Folks some of you might know this some might not. I found this program while looking for a way to record old vinyl that will do both and the best part is it's free.
The program is called audacity and can be found at http://audacity.sourceforge.net/
it's an open source program and not some illegal hack program, music streams in your computer and you press record just like on a VCR and record it. works on both PC and MAC. So as far as I know and am concerned it's legal. You still have to convert to mp3 which this program will do too with the addition of a lame.dll file. that you have to get for free. It's not automatic you have to hit record and stop there might be a plug in timer for it if you want to record a radio talk show while at work or something.
Anyway isn't going to cost you anything to check it out if you want to increase your mp3 collection.
Oh I haven't been able to get it to record on a laptop yet, I'm guessing it's the limited sound card on it, doesn't have the same digital outputs selections.